What if 70% of real estate investors are unknowingly leaving millions of dollars on the table?

In this episode, Jeff Hiatt, founder of MSC Cost Segregation Consultants, breaks down how cost segregation has helped over 26,000 clients save more than $5 billion — using strategies that have existed in the tax code since 1986.

This conversation goes far beyond theory and into how serious investors actually use tax strategy to scale faster.

What you’ll learn in this episode:

• Why 70% of investors should be doing cost segregation — and aren’t
• How accelerated depreciation increases the velocity of capital
• The difference between straight-line depreciation and cost segregation
• How investors can retroactively claim deductions without amending returns
• Why cutting corners with cheap studies can trigger painful audits
• How cost segregation fits into 1031 exchanges and long-term planning
• Why taxes should be treated as a strategy, not an afterthought

If you’re serious about scaling real estate, this episode shows why tax strategy isn’t optional, it’s foundational.

Timestamps
3:07 - Would you rather take a deduction now or wait 27.5 years for the same one?
4:34 - Why 70% of investors who should do cost seg never do it
6:10 - How one $4M tax savings changed Jeff's business overnight
10:42 - Real example: $1M property, $800K basis—how much can you write off year one?
16:36 - Big Beautiful Bill brings back 100% bonus depreciation—what investors need to know
18:33 - Going back to 1986: grabbing retroactive deductions without amending returns
20:23 - The Iron Silo: tracking components for abandonment losses during renovations
30:10 - Short-term rental loophole: how W2 earners offset income with rental losses
32:49 - Recapture explained: what you owe when you sell and how 1031s defer it forever
35:57 - Why $500 online tools and remote studies fail IRS audits
41:07 - Which asset classes give the highest cost seg results (hotels vs industrial)
56:27 - When to engage cost seg services: before purchase, during construction, or retroactively

CONNECT WITH JEFF HIATT:
Instagram: https://www.instagram.com/depreciationdoctor/
Website: https://msc.tax/

CONNECT WITH US:
Instagram: @thecaptaincurt
TikTok: @thecaptaincurt
YouTube: https://www.youtube.com/@thecaptaincurt_
Website: www.captaincapital.com
Invest With Curt: Start Here: https://www.captaincapital.com/invest

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